📊 CALY Key Takeaways
Is Callaway Golf Co (CALY) a Good Investment?
Callaway Golf faces significant profitability headwinds with a net loss of $409.3M despite positive operating cash flow, indicating substantial non-operational charges or one-time impairments. While the company maintains reasonable liquidity and generates solid free cash flow, the negative net margin (-19.9%), deteriorating ROE (-19.8%), and revenue decline signal structural challenges in the competitive sporting goods market.
The company shows solid underlying operating fundamentals with a healthy 42.1% gross margin, positive operating income, and strong free cash flow generation relative to revenue. However, flat sales, a large net loss, and weak interest coverage indicate that earnings quality and balance-sheet resilience still need improvement before the fundamentals look clearly strong. Overall, the business appears financially viable, but not yet fundamentally compelling.
Why Buy Callaway Golf Co Stock? CALY Key Strengths
- Strong free cash flow generation of $302.2M (14.7% FCF margin) demonstrates underlying business cash generation capability
- Solid gross margin of 42.1% indicates pricing power and reasonable cost management at the production level
- Adequate liquidity with $903.2M cash on hand and 1.36x current ratio provides financial flexibility
- Positive operating cash flow of $334.0M covers capital expenditure with significant surplus
- Strong cash generation with $334.0M in operating cash flow and $302.2M in free cash flow
- Healthy gross margin of 42.1% and positive operating income indicate the core business remains profitable before below-the-line charges
- Adequate liquidity with a 1.36x current ratio, 1.22x quick ratio, and substantial cash balance of $903.2M
CALY Stock Risks: Callaway Golf Co Investment Risks
- Severe net loss of $409.3M suggests major impairments, restructuring charges, or significant non-cash write-downs that obscure operational performance
- Negative ROE (-19.8%) and ROA (-5.6%) indicate shareholder capital is being destroyed despite positive operating cash flow
- Revenue decline of 0.8% YoY combined with weakening profitability suggests market share loss or demand headwinds in the golf equipment sector
- Leverage remains elevated at 0.68x debt/equity with $1.4B long-term debt; weak profitability limits deleveraging capacity
- Interest coverage of only 2.2x provides minimal margin of safety for debt servicing if operational cash flows deteriorate
- Net margin of -19.9% and net income of -$409.3M show major earnings pressure despite positive operating profit
- Revenue declined 0.8% year over year, suggesting limited top-line momentum
- Interest coverage of 2.2x is thin and leaves limited cushion if financing costs stay elevated or earnings weaken
Key Metrics to Watch
- Net income trend and identification of one-time charges vs. operational losses
- Revenue growth trajectory and market share trends in golf equipment and apparel segments
- Operating margin sustainability and cost restructuring progress
- Debt reduction progress and free cash flow allocation to deleveraging
- Return on equity recovery as operational performance stabilizes
- Operating margin and net income recovery
- Interest coverage and debt reduction progress
Callaway Golf Co (CALY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Callaway Golf Co presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
CALY Profit Margin, ROE & Profitability Analysis
CALY vs Market Sector: How Callaway Golf Co Compares
How Callaway Golf Co compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Callaway Golf Co Stock Overvalued? CALY Valuation Analysis 2026
Based on fundamental analysis, Callaway Golf Co shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Callaway Golf Co Balance Sheet: CALY Debt, Cash & Liquidity
CALY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Callaway Golf Co's revenue has declined by 32% over the 5-year period, indicating business contraction. The most recent EPS of $0.50 reflects profitable operations.
CALY Revenue Growth, EPS Growth & YoY Performance
CALY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $934.0M | $2.1M | $-0.02 |
| Q2 2025 | $1.1B | $2.1M | $0.11 |
| Q1 2025 | $1.1B | $2.1M | $0.01 |
| Q3 2024 | $1.0B | -$3.6M | $-0.02 |
| Q2 2024 | $1.2B | $62.1M | $0.32 |
| Q1 2024 | $1.1B | $6.5M | $0.04 |
| Q3 2023 | $988.5M | $29.7M | $0.16 |
| Q2 2023 | $1.1B | $105.4M | $0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Callaway Golf Co Dividends, Buybacks & Capital Allocation
CALY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Callaway Golf Co (CIK: 0000837465)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CALY
What is the AI rating for CALY?
Callaway Golf Co (CALY) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CALY's key strengths?
Claude: Strong free cash flow generation of $302.2M (14.7% FCF margin) demonstrates underlying business cash generation capability. Solid gross margin of 42.1% indicates pricing power and reasonable cost management at the production level. ChatGPT: Strong cash generation with $334.0M in operating cash flow and $302.2M in free cash flow. Healthy gross margin of 42.1% and positive operating income indicate the core business remains profitable before below-the-line charges.
What are the risks of investing in CALY?
Claude: Severe net loss of $409.3M suggests major impairments, restructuring charges, or significant non-cash write-downs that obscure operational performance. Negative ROE (-19.8%) and ROA (-5.6%) indicate shareholder capital is being destroyed despite positive operating cash flow. ChatGPT: Net margin of -19.9% and net income of -$409.3M show major earnings pressure despite positive operating profit. Revenue declined 0.8% year over year, suggesting limited top-line momentum.
What is CALY's revenue and growth?
Callaway Golf Co reported revenue of $2.1B.
Does CALY pay dividends?
Callaway Golf Co does not currently pay dividends.
Where can I find CALY SEC filings?
Official SEC filings for Callaway Golf Co (CIK: 0000837465) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CALY's EPS?
Callaway Golf Co has a diluted EPS of $-2.20.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CALY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Callaway Golf Co has a SELL rating with 76% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CALY stock overvalued or undervalued?
Valuation metrics for CALY: ROE of -19.8% (sector avg: 15%), net margin of -19.9% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy CALY stock in 2026?
Our dual AI analysis gives Callaway Golf Co a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CALY's free cash flow?
Callaway Golf Co's operating cash flow is $334.0M, with capital expenditures of $31.8M. FCF margin is 14.7%.
How does CALY compare to other Market stocks?
Vs Default sector averages: Net margin -19.9% (avg: 12%), ROE -19.8% (avg: 15%), current ratio 1.36 (avg: 1.8).